Home Hardware Ltd. sells patio loungers and uses a perpetual inventory system to account for its merchandise. The beginning balance of patio loungers and transactions during June of last year were as follows:

June 1	Opening balance: 85 units costing $250 each
June 5	Purchased 120 units costing $265 each
June 11	Sold 55 units
June 19	Sold 45 units
June 23	Purchased 75 units costing $308 each
June 25	Sold 45 units
June 30	Sold 70 units

Required:

Calculate the cost of Home Hardware Ltd.'s ending inventory at the end of June assuming the company keeps its records on a FIFO basis. Round your answer to the nearest dollar.

2.

The following information is taken from the records of Perfect Fit Fashions Inc. for 2019 and 2020:

	2019	2020
Beginning inventory	$29,000	$41,000
Ending inventory	$41,000	$31,000
Cost of goods sold	$52,000	$48,000
Gross profit	$25,000	$29,000

The company performed an inventory count at the end of 2019 and 2020 and discovered that the ending inventory amounts listed above were incorrect as follows:

	Error in Ending Inventory	$ Amount
2019	Overstated	$15100
2020	Understated	$7200

Required:

What is the corrected gross profit for 2020?

3.

Brainiac Toys Inc. uses a perpetual inventory system. Brainiac has the following account balances at December 31, 2020, prior to making any year-end adjustments:

At the end of December 31, 2019, the net realizable value of Brainiac's ending inventory was $17,000 which exceeded its cost of $14,700. Brainiac has determined that the net realizable value of its ending inventory at December 31, 2020, is $15,200.

Required:

Calculate what amount Brainiac Toys Inc. should report for ending inventory on its balance sheet at December 31, 2020.

4.

McCarthy Enterprises Inc. purchased land, paying $417000 cash as a down payment and signing a $50,000 note payable for the balance. McCarthy Enterprises Inc. also paid legal fees of $1,500, survey fees of $400, real estate commission of $8,000, and delinquent property taxes of $3,500. The company paid $25,000 to clear and grade the land, $8,000 to install fencing around the perimeter of the property, and $10,000 to pave an access road.

Required:

Calculate the cost of the land to be recorded under Property, Plant, and Equipment on McCarthy Enterprises Inc.'s balance sheet.